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 Working Abroad can be a rewarding and exciting approach to your career development plans. That's because not only are your rewarded with a paycheck, but you also gain the opportunity to live in another country and experience their culture. Before you decide if working abroad is for you, we have some information that will help you make a more informed decision.
Learning about other Countries
Prior to moving or taking a job abroad you should learn about the country or countries where you are considering working. The best approach is to research the country as if you were planning a vacation. Travel agencies will provide tourist information, airlines carry brochures for the countries they fly to, the country itself might have a department of tourism, and certainly foreign embassies can provide you with up-to-date information on their countries.
You should read as much as possible about the countries that you are considering. Make sure you understand their culture, local customs and the political environment. It is difficult to learn a new language as an adult; if you only speak English then you might want to think about working in countries with a significant English-speaking population.
Travel Advisories
The U.S. Department of State maintains a current list of travel advisories. Such advisories or warning are an important source of information on countries. Warnings or advisories can be a result of health conditions, crime, unusual entry requirements or unstable governments.
The Department of State maintains consular information sheets for every country in the world and their website is an important source of information if you are considering working abroad.
Documentation Needed when Working Abroad
The documentation you will need while working abroad will vary from country to country. That being said, there are some generalizations that can still be made. The first is that you will likely need a Passport. Even if the foreign country does not require a passport, having one will make it much easier when returning to the United States. That's because a passport is recognized as the best single proof of U.S. citizenship.
You may also be required to obtain a visa, which is an endorsement or stamp that is placed in your passport. A visa permits you to stay in a country for a specified period of time and this is usually for a specified purpose - such as working. Getting a visa is much easier if you do so before departing for work abroad. You apply for a visa through an embassy, a consulate or even a travel agent can help with the process.
Records of immunizations may also be required under international health regulations. In particular, a country may require proof of immunization against cholera and yellow fever. In some countries typhoid fever vaccinations are also required.
Health Insurance
If you become hospitalized due to injury or illness, medical care can be very costly. If you are working abroad, make sure you thoroughly understand the process and health coverage you are entitled to. For example, make sure you understand the effective dates of insurance if you are covered by an overseas company. If you are planning to continue coverage under a health insurance plan you have in the United States, make sure you understand the medical, dental and health insurance you are entitled to under that policy.
Even if your health insurance covers you for medical expenses while working abroad, you may want to explore supplemental insurance for medical evacuation back to the United States. Getting back to the U.S. can cost in excess of $10,000 and if you are not comfortable with the health care system of the country you will be working in, then you should consider purchasing this insurance.
Tax Implications of Working Abroad
In general, Social Security and Medicare taxes will apply to wages earned while working abroad if one of the following conditions applies:
- The work involves an U.S. employer.
- You are working abroad in a country in which the U.S. has entered into a Totalization Agreement. This type of agreement is a Social Security agreement between the U.S. and the country in which you are working.
- The work involves a foreign partner of an American employer under a voluntary agreement with the U.S. Treasury Department. A foreign partner is one in which the American corporation owns a 10% interest in voting stock or profits of the partner.
Finally, if you are a self employed citizen that is working abroad, you are subject to a self employment tax on net earning of more than $400 and up to $94,600 (2006 limit).
About the Author - Working Abroad
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